General Lease Terms

(As of January 1, 2019)

General Negotiable Monetary Lease Terms

Lease Terms Available:

 One to Ten Years

Monthly Minimum Rent:

 $2.50 to $3.85 per square foot

Percentage Rent:

 6% to 9%
How percentage rent works:Example:

Tenant leases a 2,000 square foot store; pays minimum rent of $5,900 per month ($2.95 per square foot x 2,000 square feet = $5,900 per month).  Tenant’s lease has a percentage rate of 8%. The Tenant’s “natural sales break point” is $73,750 per month ($5,900 divided by 8% = $73,750).

Gross Sales for the Month $75,000
Multiply Sales by Percentage Rate x 8%
Sub-Total $ 6,000
Less Monthly Minimum Rent Paid $5,900
Total Percentage Rent Due $ 100

 

Tenant’s sales in a month were $75,000; therefore, to calculate Percentage Rent:

Lease Deposit:

 Equal to approximately Two Months of Monthly Minimum Rent

CAM:

 Tenant to pay fixed Common Area maintenance, property taxes and insurance which is currently billed at a rate of 75¢ per square foot per month with annual increases (non-negotiable obligation).
Example: 2,000 square feet x 75¢ per month = $1,500 per Month

Promotional Fund Dues:

 $2.50 to $3.50 per square foot per year payable monthly
Example: 2,000 square feet x $3.00 = $6,000 ÷ 12 months = $500 Per Month for Promo Dues

 

All other lease terms will be addressed in our Lease Form.